Quick Takeaways
- Digital Company Secretary is the best method: fully online, low cost & guided process.
- SSM’s online MyCOID service is free but requires in-person identity verification.
- Ask for bundled pricing on incorporation and secretarial services to get big savings.
Incorporating a company in Malaysia? Here are three methods, ranked from least to most practical:
- Use SSM’s online MyCOID service
- Hire a traditional Company Secretary
- Engage a Digital Company Secretary (Recommended for SMBs/SMEs)
Let’s break down each method to help you decide which suits you best.
Skip to conclusion and BONUS TIP.
1. Using SSM’s Online MyCoID Service
| Pros | Cons |
|---|---|
|
|
Pros:
- Free online service
- Available 24/7
MyCoID is an online company incorporation service by SSM. It is completely free and available to use 24/7.
Cons:
- Inconvenient account registration
- Requires in-person identity verification
When creating a MyCoID account, you have to verify your identity by visiting the nearest SSM registration counter.
Cost (excluding tax): RM1,010 (travel expenses)
You will have to pay SSM’s Company Registration fee of RM1,010. Travel costs may be significant if you are far away from an SSM office.
2. Hiring a Traditional Company Secretary
| Pros | Cons |
|---|---|
|
|
Pros:
- Handles all paperwork
A company secretary will handle all the paperwork for you. This takes the workload off you and allows you to focus on other business matters.
- Provides professional guidance
A company secretary will guide you through the process and resolve any issues that arise. This is great for those lacking sufficient knowledge on company incorporation.
Cons:
- Costly
- Potential additional service fees
There are two categories of company secretaries: in-house and external.
In-house company secretaries require a salary as well as office facilities.
External company secretaries require a retainer fee and charge service fees on top of that for each service performed. In this case, a separate charge for incorporation will be incurred.
Cost (excluding tax):
- In-house: Minimum RM4,510
- External: Approximately RM1,710
If you choose to go with an in-house company secretary, the total expected cost for this method is at least RM4,510. You will have to pay SSM’s Company Registration fee of RM1,010 and your company secretary’s first month of salary RM3,500.
If you choose to go with an external company secretary, the total expected cost for this method is about RM1,710. You will have to pay SSM’s Company Registration fee of RM1,010, your company secretary’s first month of retainer fee of RM100, and company secretary’s incorporation service fee of RM600.
3. Hiring a Digital Company Secretary (Recommended)
| Pros | Cons |
|---|---|
|
|
Pros:
- Handles paperwork and guides you through the process
- Convenient online experience
- 24/7 access to forms and documents
Digital company secretary services come with a customer portal where forms and documents are accessible 24/7 from anywhere with an internet connection.
Cons:
- Possible additional service charges
Pricing plan may only cover retainer fee, and incorporation service may be charged separately.
- Physical document delivery may take a few days
CTC Documents may take a few business days to be delivered. Depending on where your Digital Company Secretary is located, it may take a few business days for physical documents to be couriered to you.
Cost (excluding tax): Approximately RM1,050
You will have to pay SSM’s Company Registration fee of RM1,010, and your digital company secretary subscription fee of RM40.
Conclusion: Best method is to Engage a Digital Company Secretary
This is the best method because it combines the benefits of having a dedicated Company Secretary with the convenience of an online service like MyCoID.
Using our incorporation package as an example, these are the online conveniences you can expect from digital company secretaries:
- Instant form submission and processing.
- Documents are accessible online as soon as available.
- Directors can e-sign and submit documents from anywhere with an internet connection.
- Secure online identity verification. No need to visit SSM.
- Get CTC documents that you need delivered to your doorstep.
- Transparent pricing with all charges listed.
This method also offers two other advantages:
- Selects a company secretary to be appointed after incorporation. This is something you have to do eventually to comply with the Companies Act 2016. This law requires all companies to appoint a company secretary within 30 days of incorporation.
- Frees you up to focus on your business. Having someone handle incorporation for you is a great relief. We see our clients realise that after incorporation, it was unexpectedly easy. Read their comments here.
Bonus Tip: Save More with Bundled Pricing
Many external and digital company secretaries offer deals that bundle incorporation and company secretary services at a great discount.
For example, our most popular package, ‘Essential Company Incorporation‘ comes with free company incorporation service, free name search and reservation, bank account opening resolution included, and digital company secretary service that covers annual compliance requirements.
If you are looking to incorporate, make sure to ask for bundled pricing.
Next Step
Now that you know the 3 ways to incorporate a Sdn. Bhd., use this list of things to prepare and decide before applying for incorporation.
Now that you have learned about the 3 incorporation methods, use this guide on “What to Prepare & Decide Before Incorporation” to prepare for the process. It includes a detailed checklist that will ensure you’re fully prepared, regardless of the method you choose.
